Leinonen Lithuania would like to inform you that the quarantine is currently valid till 16 June 2020 in Lithuania and it will not be extended. Due to this, we have prepared a summary of information...
Read full article...TRAVELING INTO LITHUANIA Residents from Estonia, Latvia and Poland will be allowed entry to Lithuania and will not be required to self-isolate themselves if for the past 14 days before entry to Lithuania they...
Read full article...We would like to inform that Lithuanian government has introduced new one-time subsidy which may be paid within 3 business days. The above-mentioned support measure can be used by small companies, so called micro companies....
Read full article...We would like to inform you that Lithuanian State Tax Inspectorate (STI) has announced a list of taxpayers which will be automatically given these aids: STI and State Social Insurance Fund Board (SCIFB) will not...
Read full article...00:00 16 March 2020, quarantine regarding coronavirus (COVID-19) spread in Lithuania was announced. The quarantine is currently valid till 30 March 2020. Due to this, we have prepared a summary of information which may be...
Read full article...Voluntary health insurance (further – health insurance) contributions paid by the company for the benefit of employee may be exempt from Personal Income Tax (further – PIT) and Social Security Contributions (further – SSC) if:...
Read full article...We would like to inform you that from January 1, 2020 the Council Implementing Regulation 2018/1912 amends the provisions of Regulation 282/2011 regarding the evidence for the movement of goods to other EU countries. Amendments...
Read full article...We notice that not all citizens of the EU Member States, spending more than 3 months in Lithuania, know that they can freely enter Lithuania and be here for up to 3 months from the...
Read full article...Law on the legal entity insolvency came into force on 1 January 2020 in the Republic of Lithuania (hereinafter – the Law). The Law establishes that Companies Register shall publish information about the persons which...
Read full article...Changes of minimum monthly salary from 1 January 2020Please be informed that minimum monthly salary has been increased by the Lithuanian Government as from 1 January 2020 as follows:· minimum monthly salary...
Read full article...Leinonen tax team would like to share insights on where businesses should pay attention in order to avoid being involved in VAT fraud. 1. We suggest that you always check if the partner’s VAT...
Read full article...On 1 February 2020 amendment of part 1 of Article 17 of Lithuanian Law on Personal Income Tax (PIT), which lists non-taxable income of the residents of Lithuania, comes into force. The provision of the...
Read full article...Starting 1 January 2020 the following changes related to business trips come into force: 1. Daily allowances taxation In order to calculate the non-taxable daily allowance for foreign business trips, fixed salary...
Read full article...Lately there has been a lot of talking about rather controversial amendment to the Tax Administration Law (TAL) Article 40-1, that came into force on 1 January 2019. The said TAL provision establishes criteria, which...
Read full article...We hereby inform that from 1 September 2019 the employers are obligated to inform Social Insurance Institution (hereinafter – Sodra) about: employed foreigners from third countries;posted foreigners to work in Lithuania from third countries and...
Read full article...Disclosure of the information regarding the support provided 28 May 2019 the Parliament of the Republic of Lithuania has agreed to the proposal of the Ministry of Health of the Republic of Lithuania regarding the...
Read full article...26 July 2019 the amendment of Law on Occupation of the Republic of Lithuania (hereinafter – Law on Occupation) came into force. The changes adopted establishes the obligation of the employers until the end of...
Read full article...The General Data Protection Regulation (hereinafter – GDPR), which entered into force last year, has brought innovation not only to business organization, but also to employment relations. GDPR obliges companies to ensure that personal data...
Read full article...In July of 2019, the Parliament of the Republic of Lithuania approved amendments of the Labor Code, which establish the obligation of the Employers to indicate the proposed remuneration in the job advertisements. After the...
Read full article...From January 1, 2020 the gross minimum monthly wage in Lithuania will be EUR 607, 9,4% higher than it is now – EUR 555. Meanwhile, the gross minimum hourly wage will be EUR 3,72 instead...
Read full article...After two years have passed, since the new Labor Code (LC) came into force, awaited and important court decisions are beginning to shape the practice of LC enforcement. On 5 July 2019 the Panel of...
Read full article...More than 20 years in Lithuania Leinonen team creates and assists in managing accounting and tax policies, ensuring legal compliance for our clients who are business start-ups, companies with a great history or even those...
Read full article...General Data Protection Regulation (hereinafter – GDPR) applicable for more than a year contributed to innovations in a daily business activity. Companies implemented technical and organizational measures and new policies, related to processing of personal...
Read full article...On the 14th May 2019, Court of Justice of the European Union (hereinafter - CJEU) has adopted a decision in the case No. C-55/18, which establishes the Employer‘s obligation to track duration of the daily...
Read full article...From August 1, 2019 local VAT reverse charge mechanism will be applied to mobile phones, tablets, laptops and hard disks. These types of goods are often used for tax fraud. As a result, VAT will...
Read full article...We would like to pay your attention, that the current Labour Code of Lithuania does not explicitly state that disclosure of confidential information is considered as a gross breach of work duties for which the...
Read full article...Law on Whistleblowers Protection entered into force on 1 January 2019 in the Republic of Lithuania. What is the purpose of the Law on Whistleblowers Protection? The Law establishes rights and obligations of the whistleblowers...
Read full article...We would like to inform you that until July 1st, 2019 there is a one-time opportunity in Lithuania to declare and/or adjust taxes and be exempt from additional interest or penalties, i.e. so-called tax amnesty...
Read full article...A beneficial owner of a legal person is a natural person who:owns a legal entity, orwho manages it directly or indirectly with 25% and more share or more than 25% of ownership or voting rights,...
Read full article...minimum hourly salary will be EUR 3,39.minimum monthly salary will be EUR 555;These minimum amounts are already multiplied by coefficient 1,289, therefore additional procedures of conversation are not required starting 2019. Below is the table...
Read full article...Currently there are two types of taxes which are calculated from the salary stated in the employment agreement, i.e. „employee‘s taxes“ and „employer‘s taxes“:· „employee‘s taxes“ are taxes which are deducted from...
Read full article...Please note that the employee sent on a business trip has the right to choose accommodation / lodging place. He may decide it on his own if it is not agreed in advance with the...
Read full article...The most important changes are as follow:- some countries have been excluded from the list of maximum daily allowances (hereinafter - the List), as example: Paraguay, Jamaica, Republic of the Congo, Honduras;...
Read full article...Below we present the most common tax incentives Tax incentive Relevant to Main conditions 0% reduced rate of Corporate Income Tax Small companies on the first year of operation For 3 years, the company is...
Read full article...1. Without regard to number of employees working in the company:- in all companies where the workplace is monitored (i.e. video surveillance, checking of employee's electronic correspondence, etc.), the...
Read full article...In this Explanation, the State Tax Inspectorate states that not the taxpayers, but the third parties are guilty for overdue calculation and payment of tax of environmental pollution. Accordingly, taxpayers, on the initiative of the...
Read full article...Lithuania, according to the OECD recommendations, has adjusted about six dozen laws, especially in the areas of public enterprise management, anti-corruption, investment promotion and liberalization of the business environment. The OECD Council confirmed that all...
Read full article...As we now have fresh first-hand experience about establishing a new company in Belarus, we can confidently say that the process is quite easy and painless. The Belarusian authorities have done much to improve investment...
Read full article...There are two options for simpler and faster recruiting of foreigners - the inclusion of a company in the List of Approved Companies or recognition of the professions of employees working in the company insufficient...
Read full article...The chain transaction is considered a group of transactions, when not only the supplier and the customer participate, but also one or few intermediaries (i.e. the intermediary/intermediaries purchase the goods from the supplier and resell...
Read full article...5 September 2017 The Grand Chamber of the European Court of Human Rights (ECHR) ruled in case Nr. 61496/08, which has strengthened the protection of employee‘s privacy. In the case of Barbulescu v. Romania, the...
Read full article...In accordance with this Decision, the Court is changing the practice which was formed in the commercial relations, whereas the companies can agree on the priority right or its refusal from now. Under the mentioned...
Read full article...Social security tax contributions consist of two parts: employer’s (31,18% and 32.58% for fixed-term employment agreements) andemployee’s (9% or 11%). The obligation to calculate additional social security tax contributions from the MMS applies only to companies. ...
Read full article...Maximum amount of the shareholders of private limited liability company According to the changed Article 2 of Law on Companies, the limitations on the maximum amount of shareholders of private limited liability company is voided....
Read full article...I. Gifts and prizes from employers when value of prize or gift does not exceed EUR 200, are considered non-taxable income. Until 1 January 2018 only prizes from employees when value did...
Read full article...I. Newly established entities which fulfills the conditions detailed below may apply 0% CIT rate for the first year of the activity. The conditions are:a. average number of employees does...
Read full article...On November 2017 the STI has published the Commentary of the above-mentioned and stated the circumstances, which may be evaluated to determine when the arrangements are not genuine. Not genuine arrangements may be considered a...
Read full article...The World Bank acknowledged that Lithuania has implemented positive reforms in four areas: dealing with construction permits, getting electricity access, protecting minority investors and paying taxes. Please find more information here: http://ukmin.lrv.lt/en/news/doing-business-2018-lithuania-among-20-most-business-friendly-countries-in-the-world
Read full article...From 1st January 2018 the minimum monthly salary will be EUR 400 and the minimum hourly salary will be EUR 2,45. From 1st July 2017 the minimum monthly salary is EUR 380 and the minimum...
Read full article...The decision of the case needed clarification from the Lithuanian STI, because it contradicted the Lithuanian legislation, regulating 0% VAT rate application to the transportation services, when these services are provided to the freight forwarder,...
Read full article...If the Lithuanian Company is a part of MNE, which has an obligation to submit the CbCR, the Company should submit to the STI the following information by free form notification:whether the Company is the...
Read full article...If a company posts worker to Finland by an internal transfer within one group of companies for no longer than 5 working days, the notification about posted workers is not required. However, in case workers...
Read full article...Regulation implements the Data protection reform, which aims for a better protection of the personal data and privacy. The new rights of natural person have been established in this Regulation: a right to data portability....
Read full article...Below is a short description of the main changes: the rules were amended with the information regarding the STI working group, that deals with applications, i.e. the establishing of working group, decision making process and...
Read full article...From the 1st of August 2017 the social insurance contributions should be paid only from 50% of the royalty’s amount, if the author receives income not from his / her employer. We would like to...
Read full article...The Commentary clarifies that bribery may be considered not only as a direct transfer of funds to a relevant person but also other ways intended to affect some person. The STI emphasized that the expenses...
Read full article...The Court established, that transportation services related to the exportation / importation of goods should be treated as services which are directly related to the supplier or purchaser of goods. The Court’s ruling amends current...
Read full article...Based on the legislation, the MNE situated within the European Union (hereinafter - EU) or with operations in the EU with total consolidated revenue equal or higher than 750 million EUR should submit the CbCR...
Read full article...Will the employers be obliged to amend the existing employment contracts after NLC comes into force? The revision of the existing employment contracts is not necessary, it may be useful though. Leinonen team recommends the...
Read full article...According to the amendments, the following restrictions for debtor and person who takes over the tax arrears, were dismissed: to transfer tax arrears taken to the third person;to return taken tax arrears to the tax...
Read full article...Therefore, we would like to remind that Financial Statements shall be:prepared and confirmed by the General Meeting of Shareholders in 4 months after the end of the financial years; submitted to the Register of Legal Entities...
Read full article...The application should be filled in the Lithuanian language and could be submitted by e-mail, fax or e-services no later than 1 day before the business trip in Lithuania starts. The application form should contain:...
Read full article...The Court established, that the requirements for the purchaser to have the VAT number and to be registered in the VIES system are not essential conditions for the application of 0% VAT rate to the...
Read full article...It is recommended to check, whether there are obligations to submit information regarding the goods transported to i.VAZ subsystem. Rules of submission of the consignment note’s data to the i.VAZ subsystem could be found:https://leinonen.lt/news/news-2016/submission-of-the-consignment-notes-data-to-i-vaz-system
Read full article...The Court has ruled that improper accountancy is equated to large carelessness, i.e. such acting does not correspond nor to careful, neither to circumspect behavior standards of the Director. The Court has noted that it...
Read full article...It is expected, that unemployment insurance contribution will be 1,6% (until 1 July 2017 1.1% rate is applied). Moreover, as from 1 July 2017 unemployment insurance contribution for time-limited work agreements will be increased twice...
Read full article...According to the updated requirements, information regarding transportation of goods could be submitted to i.VAZ subsystem by any person participating in the transaction (i.e. carrier, consigner or consignee) without any additional documents, i.e. power of...
Read full article...In case the Employee breaches a clause of confidentiality the Employer has a right to claim for the compensation of damages it has suffered. In order for the Employer to implement this right, the Manager...
Read full article...Below are provided the main aspects of the recommendations: When does the Company need to check its business partner?It is recommended to analyse the Company’s business partner’s economic activities, before acquiring/supplying goods or services to...
Read full article...The STI informed, that the opportunity to submit registers in easier and faster way is already available: data could be submitted by using the machine-to-machine services, i.e. automatically transfer registers to STI from company’s accounting...
Read full article...Below is a short description of the main changes: the parcel post, defined in the Lithuanian Postal Law (i.e. postal correspondence, parcel posts with weight under 50 kg or posts, which contain books, magazines and...
Read full article...The Commentary clarified, that taxable value of the outer package of the non-compensated prescribed medicines is the taxable value of the package after granting discounts. It is also noted, that the external package consisting of...
Read full article...Long-term debtor is a legal person, which meets all the following criteria:· is a VAT payer;· tax arrears declared are more than EUR 10.000 and not paid...
Read full article...· if goods or services are identified in gift voucher, then reimbursement for the gift voucher could be treated as an advance payment and the taxpayer has the right to choose, whether...
Read full article...Below is a short description of the main provisions. Creditor’s rights and obligations:· based on the Regulation, in case if a creditor does not have sufficient information regarding a debtor’s bank accounts...
Read full article...Norway plays a significant role in Group’s strategy, as it is an interesting market area for the companies established in Finland, as well as for other companies located where Leinonen Group operates. Also Norwegian companies...
Read full article...Below is an explanation regarding issuing VAT invoices for advance payments received and issuing “final” VAT invoice for the supply of goods/services.1. VAT invoice should be issued for advances payment received if such...
Read full article...The employers may receive compensation of 23,3% of calculated salary for:· the period till 12 months employing 18 – 29 years old people for the first time;· the period till...
Read full article...Below is a short description of the main changes, related to the finances of legal entities or their branches / representatives: According to the Code, the fine could be imposed in the amount from EUR...
Read full article...Making analysis of various VAT schemes of our Clients, we have noticed, that Clients do not take into account the negative tax consequences, related to the transferring of various goods from Lithuania to another EU...
Read full article...According to the Regulation, the following shall be regarded as immovable property: · any specific part of the earth, on or below its surface, over which title and possession can be created;· ...
Read full article...Therefore, until 1 July 2017 the current version of Labour Code is valid.
Read full article...2016 2017 NTIA The formula of monthly NTIA NTIA = 200 – 0,34 x (Monthly salary – 350)* NTIA = 310 – 0,5 x (Monthly salary – 380)* The formula of annual NTIA NTIA = 2.400...
Read full article...Payments to the guarantee fund for periods till 31 December 2016 should be paid to the STI (payment code 1961). Taxpayers, who wrongly paid to the STI, can submit the application form FR0781 and get...
Read full article...Moreover, from 1 January 2017 the VAT Law amendments come into force, on the grounds of EU Regulation No. 952/2013 from 9 October 2013, which established the implementation of EU customs code. According to the...
Read full article...Previously, the company could use the tax incentive if it was registered in FEZ, had the capital investment of no less than EUR 1 million and not less than 75% of the company’s income were...
Read full article...Business trips to Lithuania The Law mentioned above is applied when an employee is posted to work temporarily in Lithuania:1. under a contract concluded by a foreign employer with a customer operating in...
Read full article...The bankruptcy administrator representing the bankrupting companies has purchased services (e.g., accounting, security of real estate, legal, electricity and others) which were essential and unavoidable while supervising the assets of the bankrupting companies and implementing...
Read full article...On the basis, that the new Labour Code is already adopted, the employers should review the documents of the company and amend them according to the provision of the new Labour Code. Therefore, we would...
Read full article...1. Is it obligatory for entities to submit the data from consignment notes to i.VAZ? There is an obligation to submit the data from consignment notes to the Lithuanian Tax Authority if all the...
Read full article...It is a pleasure to announce, that even 98% of Vilnius citizens have been satisfied with their lives in Vilnius. Vilnius has outrun other capitals of the European Union- Copenhagen (97%), Stockholm (97%), Tallinn (92%),...
Read full article...Below is the list of information which should be provided about the residents of Lithuania:· accounts balance on 31 December (if the sum of balances of all bank accounts held at the...
Read full article...Based on the Court’s decision, the Tax Administrator should not demand from the tax payers to incur disproportionate time and other resources costs in order to collect information about a credibility of its business partners....
Read full article...the tax returns are submitted by the Lithuanian natural persons;the electronic preparation of tax returns would create disproportionately huge administrative burden to the tax payer, e.g. applicable to the submission of tax returns by foreign...
Read full article...1. Social insurance contributions will be calculated from currently tax-free amounts: remunerations paid according to civil contracts to managers of small partnerships who are not members of the small partnership,bonus paid to the members...
Read full article...The following rates are established:minimum monthly wage - EUR 380 (EUR 350 previously applied), minimum hourly wage - EUR 2,32 (EUR 2,13 previously applied).
Read full article...The State Tax Inspectorate is developing a smart tax administration system (further - i.MAS). Accordingly, taxpayers will be obliged to provide to the State Tax Inspectorate with more information on their activity. In April 2016...
Read full article...Economical situation in Lithuania is on the level that new foreign investments are quite active in our country. Even though the growth of the economy was just 1,6 % in 2015, forecast for this year...
Read full article...What is the threshold to follow procedures established by the legislation for transfer pricing documentation? What are tax litigation practices in Lithuania? Transfer pricing issues raised during tax investigations have already reached the Supreme Administrative...
Read full article...EUCJ has explained, that the issue by an airline company of tickets is subject to value added tax where the tickets have not been used by passengers and the latter are unable to obtain a...
Read full article...• One due date rule has been established for tax payments and declarations – by the 15th day of the respective month, except VAT, which is to be paid by the 25th day of the...
Read full article...The following non-taxable Class A payments are eligible for declaration in the annual personal income tax return:• Daily allowances; increased expenditure compensation to employees, whose work is performed in travel, under field conditions, related to...
Read full article...I.MAS will consist of 7 subsystems:1. Smart cash register subsystem (i.EKA) – taxpayers will be obliged to provide information to the tax authority on cash desk operations remotely in real time or at the determined...
Read full article...EUCJ ruled that afore mentioned assets given free of charge to the public can be linked to transactions subject to VAT. In this case the establishment of recreational object provides the ability to attract more...
Read full article...EUCJ ruled, that aforementioned transactions constitute the supply of services for consideration and are exempt from VAT according to article 135 (1) e of Directive 2006/112. The exchange of virtual currency bitcoin into traditional currencies...
Read full article...The procedures shall be applied to all empty packaging and packaging filled with goods placed on the market, except for the packaging filled with goods, used for one’s own purposes.General requirements for packaging:1. Packaging shall...
Read full article...Therefore, the companies will have to deduct from the salary the following social security contributions:• 9% (standard tax rate applied to employees who did not choose to transfer additional contributions to pension funds) or •...
Read full article...The said obligation is enforced in the Law on Financial Accounting of the Republic of Lithuania, indicating thereof that accounting data are based on the inventory data of assets and obligations, i.e. all accounting data...
Read full article...Transactions were executed through intermediaries, i.e., intermediaries submitted purchase orders to the company and received invoices for such acquisitions. The Tax Authorities challenged application of zero-rated VAT stating that the fuel was supplied not to...
Read full article...The system centralises administration of information on monetary fund restrictions, sends information to banks on restrictions orders and proportionally distributes funds to creditors. Previously a creditor who presented orders on funds restriction to a bank...
Read full article...In case contracts for services with members of a small partnership are still signed despite this prohibition, the Tax Authorities shall consider such agreements void and tax them accordingly.Therefore, in case civil contracts for services...
Read full article...Changes planned:Opportunity to apply either business accounting standards or international accounting standards unless the legislation requires contrary.Companies that are not part of a business group and trade or plans to trade in regulated markets will...
Read full article...Invoices should only be issued in cases where goods are supplied (services provided) and they should not be issued when there is a compensation of expenses (subsidy), on cash collection and other cases.Invoices while providing...
Read full article...threshold of EUR 100 on acquisition of goods or services that could be recognised as costs by cash receipts; threshold of EUR 150 (including VAT) on acquisition of fuel that could recognise as costs by...
Read full article...EUCJ was requested to explain whether budgetary entities performing economic activities delegated to them by a municipality can be considered as taxable persons for VAT purposes. These entities do not bear an economic risk associated...
Read full article...EUCJ decided that Italian criminal laws related to suspension of a limitation period in relation to crimes concerning serious VAT fraud do not fulfil the State’s duty to ensure imposition of effective and dissuasive penalties...
Read full article...A company concluded a consulting service agreement in which a supplier committed to provide necessary consulting services, prepare requested documents and refrain from entering into contracts with a company’s competitors. The company agreed to pay...
Read full article...According to mentioned judgement, time spent travelling between the workers’ homes and the premises of the first and last customers shall be calculated as working time. Workers are considered to be carrying out their working...
Read full article...It must be noted that this applies only in cases when such goods are supplied to taxable person VAT payer under a single agreement which covers installation or construction services.Until 25 August there were no...
Read full article...* If such information is not provided by a tax payer until the deadline indicated, such information shall not be taken into account and evaluated by the Tax Authorities in case provided later.
Read full article...According to the VAT Law, the supplier of goods must justify application of zero-rated VAT by the documents accompanying the transaction. Every transaction requires a careful assessment by the supplier of conditions of shipment and transfer of...
Read full article...Export is an important part of Lithuanian international trade. Our country’s economy is dependent on foreign markets; therefore, the development of export is one of the most significant factors in expanding the gross domestic product...
Read full article...* If exceptions are not applied
Read full article...09 October 2014 ECJ Case C‑492/13 (Traum EOOD) – The ECJ spoke up that the tax administrator cannot preclude granting a VAT exemption in respect of the tax payer just on the grounds that the...
Read full article...Please read the Newsletter here: http://53708962d5e14.mailerlite.com/y0v2o3/
Read full article...Algirdas gathered years of tax consulting experience while being engaged in significant tax optimisation and tax risk management projects, has a great knowledge on taxation issues related to international trading and other transactions. Algirdas provided...
Read full article...ACCA is the global body for profesional accountants with with 162.000 members and 428.000 students in 173 countries.Leinonen Lithuania is very proud with one of our team members who works with us more than 6...
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Read full article...Please read an article: New advisory unit established at Leinonen Mažena Birbalienė, Head of Advisory Unit Leinonen Group is an accountancy and advisory company whose 13 offices can be found in the capital cities of...
Read full article...The major accounting and tax amendments that come into force since 1 January 2014. 22 Business Accounting StandardItem 6 of 22 Business Accounting Standard “Changes in Foreign Exchange Rates” whereof it was indicated that business...
Read full article...ACCA is the global body for profesional accountants with with 162.000 members and 428.000 students in 173 countries.Leinonen Lithuania is very proud with one of our team members who works with us more than 6...
Read full article...Leinonen Lithuania is very proud with one of our team members who attained the highest mark in an individual ACCA Paper exam in Lithuania and was also in the top 1% worldwide. Well done!
Read full article...Annual client satisfaction results show that 96% of Leinonen clients are either satisfied or very satisfied with the services they received and with their accountant. This reflects the high standard Leinonen provides and is the...
Read full article...M-Filter established their operations in Lithuania in 2011 and has thus now been operating in Lithuania for two years. From the very beginning it has outsourced all financial processes to Leinonen including payroll and accounting. "We...
Read full article...From 1 January 2013, the minimum salary in Lithuania has been increased from 850. LTL per month to 1,000. LTL per month, and 5.15 LTL an hour to 6.06 LTL an hour. Also, the maximum...
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